Outokumpu-IR-presentation-November-2020

De-risking the company for strong
returns by the end of 2022
Investor presentation November 2020
1
| November 27, 2020
Table of contents
2
1. Outokumpu in brief
(slide 3)
2. New strategy
(slide 15)
3. Business areas
(slide 32)
4. Markets
(slide 41)
5. Sustainability
(slide 51)
6. R&D
(slide 61)
7. Latest financials Q3 2020
(slide 66)
8. Appendix
(slide 81)
| November 27, 2020
Outokumpu in brief
Outokumpu – global stainless steel producer
Net sales
€6.4bn
Adjusted
EBITDA
€263m
Sales by business area*
Ferrochrome 2%
Stainless
steel
deliveries
Sustainability
leader with
Operations in
90%
>30
recycled
content
countries
2.2mt
Sales by destination*
Other operations
6%
Asia &
Oceania 7%
Other
countries
5%
Long
Products 8%
North America
22%
4
| November 27, 2020
United
Kingdom 5%
Consumer goods
10%
Automotive 12%
Distributors
46%
Architecture, building
& construction 3%
End-customers
54%
Germany
24%
Italy 9%
Europe 63%
10,390
Sales by customer segment*
Other Europe
21%
Americas 21%
Personnel
Sweden 3%
Finland 4%
*Outokumpu in 2019
Listed in
Nasdaq
OMX
Helsinki
Chemical,
petrochemical and
energy 1%
Heavy industries 12%
Other 5%
Metal processing &
tubes 11%
We take care of our employees and our customer
satisfaction is by far the highest in the industry
Organizational health index1
Safety development2
Customer satisfaction3
1st
quartile
Outokumpu
8.7
Competitors
2nd
58%
quartile
3rd
4.4
quartile
4.1
4th
3.2
quartile
2016 2017 2018 2019
2016 2017 2018 2019
1)
2)
3)
5
| November 27, 2020
McKinsey organizational health index
Total recordable injury frequency
Percentage, Outokumpu customer satisfaction survey 2019
72%
Absolutely or
very satisfied
customers3
Financial development in 2016–2019
Net debt
below
Cumulative
adjusted EBITDA
Gearing
improved by
€1.1
€1.7
35%
billion*
billion
* At the end of 2019, excluding IFRS16 adjustment; implementation impact on January 1, 2019
6
| November 27, 2020
Flat stainless and ferrochrome core businesses,
Long Products in accelerated turnaround
Turnaround
Core business
7
BA Europe
BA Americas
BA Ferrochrome
BA Long Products
• #1 in Europe in terms
of volume
• #2 in the US in terms
of volume
• Unique integration to
stainless steel
• World-class mills in
Finland, Sweden and
Germany
• Most modern stainless
facility in the US, sole
producer in Mexico
• First quartile in terms
of cost competitiveness
• Broad range of bars,
wire rod, wire, rebar and
semi-finished products
• Leading offering:
unique & demanding
specialties, best-in-class
service capabilities
• Ferritics investment,
ramp-up starting in Q4
| November 5, 2020
• Significant progress in
production, distribution
and product range
• Kemi mine: the only
chrome mine in EU area
• CO2 footprint 42% of
the industry average
• Deep Mine project to
secure ore availability
• Strategic review
finalized, accelerated
turnaround program
launched by the new
management
• Headcount reduction of
approximately 100
people
Stainless steel is the future for sustainable modern
society with its unbeatable features
Corrosion
resistant
8
| November 27, 2020
Corrosion
resistant
Sustainable
Heat
resistant
Hygienic
High
strength
Heat
Aesthetic
resistant
Durable
Cost
efficient
The world
needs long
lasting,
hygienic and
sustainable
solutions
9
| November 27, 2020
Economic and
population growth
Healthcare, clean
water, appliances..
Infrastructure, mobility
and urbanization
Buildings, elevators,
trains, bridges,…
Climate change and
limited resources
Energy investments,
resource efficiency,…
Sustainable
stainless steel
Long-lasting,
recyclable solutions
Expectations for real demand growth lowering
Expected stainless steel real demand in 2025
Global stainless steel real demand in 2019
Heavy
industries
Architecture,
Building &
Construction
Heavy
industries
Other
+16%
+21%
44.2
million tonnes
Chemical,
Petrochemical
& Energy
10
| November 27, 2020
Consumer
goods
& Medical
+36%
53.6
Automotive
million tonnes
Chemical,
Petrochemical
& Energy
+12%
Source: SMR, July 2020
+34%
Architecture,
Building &
Construction
+6%
Automotive
Other
Consumer
goods
& Medical
+23%
We have a balanced customer portfolio*
End-customers
Consumer goods
10%
Distributors
46%
Automotive 12%
End-customers
54%
Architecture,
building &
construction 3%
Chemical,
petrochemical and
energy 1%
Heavy
industries 12%
Other 5%
Metal processing &
tubes 11%
*Sales in 2019
11
| November 27, 2020
54%
Distributors
46%
•
Long term contracts
•
Large quantities
•
Special grades
•
Ferritics and duplex
•
Technical advice
•
Develop relationships & receive
volume discounts
•
Spot contracts
•
Standard products and grades
•
Austenitic cold rolled and tubular
products
•
Speculative behaviour
•
Value added services
Flat products
Outokumpu has
the broadest
product portfolio
globally.
The use of our
steel reduces the
carbon footprint
of our
customers’
products.
Slab
Hot rolled
black coil
Hot rolled
white coil
Quarto plate
Cold rolled
white coil
Precision strip
Long products
Cast semis
Rolled and
forged billet
Wire rod
Bar
Rebar
Wire
Outokumpu stainless steel deliveries by product form*
Cold rolled 69%
Hot rolled white coil 17%
Quarto plate 4%
Long products 5%
Semi finished stailess steel products 6%
* Sales in 2019
12
| November 27, 2020
Ferrochrome
Chrome is the most important
raw material used in stainless
steel production.
Outokumpu has its own
chrome mine and ferrochrome
works and this makes us
uniquely self-sufficient.
Ferrochrome contains 50–54%
of chrome. Most of our
ferrochrome is used in our own
melt shops and approximately
25% is sold to other producers.
Outokumpu is the only
producer of Ferrochrome in
Europe.
We have a solid presence in key regions
Avesta*
Fagersta
Tornio*
Degerfors
Kemi
Sheffield
Nyby
Krefeld*
Helsinki
Richburg
Dillenburg
Calvert
Dahlerbrück
Integrated melt shop,
hot and cold rolling
Other mills
Mine
Service centers
Headquarters in
Helsinki, Finland
San Luis Potosí
*
13
| November 27, 2020
R&D centers
Fully integrated production asset base
Europe
Tornio
1,000 tonnes
Finland
Americas
Avesta + Krefeld + Degerfors
Nyby
Dillenburg
Sweden Germany Sweden
Calvert
Mexinox
Sheffield
USA
Mexico
UK
Melting
1,450
450
900
Hot rolling
1,450
900
870
750
150
130
120
Finishing
Cold rolling
Hot white band
Quarto plate
Long products
14
| November 27, 2020
Long Products
Total
Richburg Degerfors Fagersta
USA
Sweden
Sweden
450
3,250
3,220
2,720
500
350
150
250
150
25
40
40
65
New strategy
Strong foundations support strategy execution
Megatrends drive
stainless steel
demand growth
Great people and
strong safety
performance
16
| November 27, 2020
Leader in
sustainability
High customer
satisfaction
72%
Turnaround in the
Americas
Stable operations
and continuous
improvement
culture
17
Margin improvement, cash flow and de-leveraging
as main sources of value creation
Phase 3: 2026–
Phase 2:
2023–2025
Phase 1:
2021–2022
Margin improvement
and de-leveraging the
balance sheet
Investing in growth
and sustainability
Targeted productivity
investments to improve
margins
Continue de-leveraging the balance sheet
17
| November 27, 2020
Customer’s
first choice in
sustainable
stainless
steel
Our priority for 2021–2022:
De-risking the company for strong returns
Strengthen accountability for performance
Lean & agile
organization
Active performance
management
Financial
discipline
Profitability improvement
Europe
Continue operations and commercial excellence
Americas
Commercial turnaround, incl. ferritics investment
Ferrochrome
Commercial optimization
Long Products Holistic operations and commercial turnaround
18
| November 5, 2020
Strong returns;
Reliable partner to stakeholders
€200
million
EBITDA
improvement*
*run-rate improvement from
actions by year-end 2022.
<3.0x
Net debt /
EBITDA
Strengthened accountability for performance
19
Lean and agile
organization
Active performance
management
Financial
discipline
•
Simplified structure
•
•
•
De-layered organization
Business Area Boards to
manage performance
Priority to secure strong
balance sheet
•
New management team
•
•
•
1,000 planned reductions
Executional certainty
through three-phase
program
Highly selected
investments to improve
cost position
•
Stronger business
orientation in decision
making
•
Quarterly external
reporting on progress with
Q1 2021
•
Improved asset
management to reduce
maintenance capital
expenditure
| November 27, 2020
20
Planned headcount reductions will improve
cost competitiveness
Legal headcount, average for the period
excluding VDM, AST, OSTP transaction in 2013/14
10,977
10,485
10,468
10,645
10,118 *
< 9,000 **
2016
20
| November 27, 2020
2017
2018
2019
* At the end of the period
** Planned headcount
2020 Q3
2021
2022
€200 million EBITDA run-rate improvement
delivered by end of 2022
21
Customer
excellence
• Enhanced product mix in all business areas
• Growth in selected segments
• Leverage specialty grades leadership
Cost & capital
discipline
•
•
•
•
Lean & agile
organization
• Planned 10% reduction in Group headcount
by end of 2021
• De-layered organization
• Strong performance management
| November 27, 2020
Increased raw material efficiency
Maintenance optimization
Strict asset management
Annual CAPEX €180 million in 2021 and 2022
€200
million
EBITDA
improvement*
*run-rate improvement from
actions by year-end 2022.
New steering
model ensures
diligent strategy
execution
22
| November 27, 2020
• Concrete initiatives in each business area to
deliver bottom-line impact
• Disciplined weekly tracking of progress by
Transformation Office led by CFO
• Monthly CEO chaired Business Area Boards to
address potential deviations
• External commitment: quarterly reporting on
progress, starting with Q1/21
Business area Europe: Customer engagement
at the core of the new strategy
Commercial excellence
23
Grow
specialty
grades sales
Strengthen
commodity
grades sales
supported by
new products
and high quality
technical sales
through
improved cost
competitiveness
and stronger
customer
engagement
| November 27, 2020
Cost & capital discipline
Continue
Accelerate
raw material
cost optimization
manufacturing
excellence
program
Reduce
Optimize
fixed costs
maintenance
spend & drive
procurement
savings
Lean & agile organization
Personnel
measures
De-layered
structures
Business area Americas: From turnaround to
continuous improvement and growth
Commercial excellence
Strengthen
Grow
Continue
Optimize
commercial
footprint in the
US and Mexico
in automotive,
appliances, and
pipe & tube
segments
slab cost
optimization
freight costs
Ferritics investment
Capture full benefits from the
€30 million investment made in
ferritics offering, ramp-up starting
24
Cost & capital discipline
| November 27, 2020
Continue
manufacturing excellence
program
Lean & agile organization
Personnel measures
in Mexico
Business area Ferrochrome: Strong potential
for future value creation
Increase
Reduce
Improve
sales through
new product
development
reliance on spot
market and
logistics costs
fine concentrating
plant capabilities
and mining
efficiencies
Deep Mine investment
Finalize the €283 million mine expansion investment to
secure our ore availability until the beginning of the 2040s
with current ferrochrome production.
•
25
€123 million cash out Capex in 2021-2022
| November 27, 2020
Business area Long Products: Turnaround driven by
operational improvements & commercial excellence
Accelerated
turnaround
program
launched by the
new
management
will deliver
significant
improvement in
financial
performance
26
| November 27, 2020
Reduce
Roll-out
Align
headcount by
approximately
100 people
manufacturing
excellence
program
fixed costs to
current volumes
Extract
Commercialize
Expand
fair value from
the unique
offering,
especially in
semis
investments
made to
Fagersta
bar product range
and distributor
presence
Indexed market demand (Index, 2018 = 100)
27
| November 27, 2020
1. Europe and NAFTA/USMCA, Source: CRU, SMR
Outokumpu planning premise
2022
93 96
2021
78
2020
2019
100 97
2018
2022
2021
2020
2022
2021
2020
Market demand
2019
100 89
78 86 90
98
84 94
2018
100 97
2019
Flat products
NAFTA/USMCA
2018
Improvement
plans factor in
potentially
slow market
recovery
Long products1
Flat products
Europe
Significant progress to deleverage the company,
but further improvement needed
Return to shareholders €0.2 billion
Cumulative
operating
cash flow
€1.3 billion
Net investments €0.2 billion
€0.9 billion CAPEX, €0.7 billion divestitures
€1.1 billion
€0.8 billion net debt reduction
Includes €0.1 billion non-cash increase in net debt
2015–2019
28
| November 27, 2020
Q3 2020
net debt
Net debt /
LTM EBITDA
4.5x
Target 2022
<3.0x
Net debt /
EBITDA
Priority to strengthen balance sheet to create
shareholder value
Operating cash flow
Return to
shareholders
29
Phase 1: 2021–2022
Phase 2: 2023–2025
Improved from low levels driven by
€200 million EBITDA improvement
Continued focus, supported by higher
and improving margins
Following a review of the January-September 2020 financial results, Outokumpu's Board of Directors
has decided that owing to the importance of strengthening the Company's balance sheet no dividend
will be paid for the financial year 2019.
The Board confirms that in the challenging market environment improving the Company's financial
position will continue to be of highest priority.
CAPEX
€360 million
of which €122 million to DeepMine
Continued capital discipline: High return
investments to lower cost
Net debt / EBITDA
<3.0x by period end
De-leveraging continues
Focused capital allocation – annual CAPEX
€180 million in 2021-2022
Annual capital expenditure
In 2021-2022 CAPEX focused on
ongoing strategic investments and
retaining maintenance on a
sustainable level
250
•
Maintenance CAPEX optimized to
support the current operational level
150
•
Deep Mine investment to be
finalized in 2022
100
•
After 2022 potential to invest in
productivity, sustainability and
growth
•
200
50
0
2018
2019
2020
Deep Mine investment
Maintenance & efficiency
30
| November 27, 2020
2021
2022
Strategic Investments
Actions to strengthen sustainability leadership
Current sustainability performance
1.
2.
3.
4.
31
| November 27, 2020
Targets
Safety and
wellbeing
• >50% reduction on incidents1 since 2015
• Organizational health index (OHI) in 2nd quartile
• Ultimate goal zero accidents
• Ensure industry leader position
Circular
economy
• >85% recycled content, highest in the industry
• Energy efficient processes and reuse of side streams
• Increase the share of recycled content
CO2
reduction
• >75% lower carbon footprint than Asian producers2
• 8MT reduction on customers' CO2 footprint in 20193
• 20% lower carbon footprint by 2023
• Carbon neutral in 20504
Lost time injury frequency rate
Outokumpu average carbon footprint: 1.6 t/ton of crude steel vs. China and Indonesia estimate at 7.6.
Outokumpu average carbon footprint: 1.6 t/ton of crude steel vs vs global average of 5.4. Outokumpu
stainless deliveries of 2.2m in 2019
Our carbon neutrality commitment relates to scope 1+2. Regarding scope 3, we’re working closely with
our RM suppliers to ensure that they identify opportunities to reach carbon neutrality by 2050
Business areas
Outokumpu’s assets work as one integrated system
Sales by business area in 2019
€ 6,403 million
Avesta
Fagersta
Tornio
Degerfors
Kemi
Sheffield
Nyby
Krefeld
Richburg
Dillenburg
Calvert
Dahlerbrück
San Luis Potosí
Europe
Americas
Long Products
Ferrochrome
33
| November 27, 2020
#1 stainless steel producer in Europe, #2 in the US
Business
area
EUROPE
AMERICAS
28%
Market
share
#1
Production
facilities
Finland, Sweden &
Germany
Largest
customer
segments
Distributors
Automotive
Appliances
Heavy industries
Main
competitors
34
| November 27, 2020
#2
21%
US & Mexico
Distributors
Appliances
Automotive
Pipes & tubes
LONG PRODUCTS
US
Europe
11%
10%
UK, Sweden & US
Distributors
Metal processing
Heavy industries
Tubes
FERROCHROME
4%
#6
Finland
Stainless steel
producers
State-of-the-art production facilities – Europe
Outokumpu’s assets work as one integrated system with large integrated sites in Tornio, Finland and Avesta, Sweden feeding rest of the mills
Europe. Outputs include a wide range of austenitic and ferritic standard stailess steel grades and tailored and high performance products.
Tornio
• Largest single site stainless steel production facility in
Europe by cold rolling capacity
• Only stainless steel facility in the world fully integrated
with ferrochrome
• Most sustainable stainless steel mill in the world and
largest recycling center in Europe
• Unique rolling, annealing and pickling (”RAP”) line
producing minimum thickness tolerance, high surface
quality and corrosion resistance
Degerfors
• Site producing quarto plate in high performance
stainless steel
• Plate service center for complex projects
• Also part of BA Long Products
• Fully integrated site with focus on high performance
stainless grades
• Inventor of duplex stainless steel grades
• Prefab and press plate special manufacturing units
• Delivers hot band to Nyby and sites in Germany for
cold rolling and slabs to Degerfors for quarto plate
production
• Cold rolling mill focusing in duplex, high-alloyed
austenitic and heat resistant special grades
| November 27, 2020
Degerfors
Nyby
Krefeld
Dillenburg
• Cold rolling mill specialized in customized finishing
processes for unique decorative surfaces
Krefeld
1,000 tonnes
• Cold rolling mill producing comprehensive range of
grades, dimensions and surface finishes
Melting
Hot rolling
Dahlerbruck
Finishing
• Cold rolling
• Hot white band
• Quarto plate
• Cold rolling mill producing precision strip
35
Tornio
Nyby
Dillenburg
Avesta
Avesta
Tornio
Finland
1,450
1,450
750
150
Avesta + Krefeld +
Degerfors
Nyby
Dillenburg
Sweden
Sweden Germany
450
900
130
120
500
150
State-of-the-art production facilities – Americas
The Americas’ production units are located in Alabama, US and San Luis Potosí, Mexico. The production sites are supported by distribution
centers in Illinois, Pennsylvania and California, US and a service center in Argentina. The business area produces standard autenistic and ferritic
grades as well as tailored products.
Calvert, US
1,000 tonnes
• Fully integrated site with comprehensive product portfolio
• Most technically advanced mill in the USA
• Feeds hot rolled coils to Mexinox
• Austenic and duplex grades, ferritics capabilities built by 2020
San Luis Potosí, Mexico
Calvert
• Cold rolling mill specialized in ferritic stainless steel grades
• Only stainless steel mill in Mexico serving both domestic
market and supplying ferritics back to the USA
San Luis Potosí
36
| November 27, 2020
Calvert
Melting
900
Hot rolling
870
Finishing
• Cold rolling
• Hot white band
350
150
San Luis
Potosí
250
State-of-the-art production facilities – Long Products
The integrated mill in Sheffield, UK feeds semi-finished products to finishing facilities in Sweden and US. Long Products’ product offering consists
of a broad range of bars, wire-rod, wire, rebar and semi-finished products in standard and tailored grades.
Sheffield
Richburg
• Melt shop & continuous casting, a
bar finishing facility and wire rod mill
• Cold finished long products
manufacturing facility serving the
American market
• Inventor of martensitic stainless
steel grades
• Feeds Long Products’ other mills
with blooms and billets and BA
Europe with slabs
Fagersta
Degerfors
• Global wire rod supplier in a broad
range of stainless steel grades and
sizes.
• Hot rolling mill that is a global
supplier of high quality bars as well
as rolled and forged billets in a wide
range of stainless steel grades
• Belongs to the world´s leading
producers of stainless wire rod with a
flexible and high quality
manufacturing program
| November 27, 2020
Degerfors
Richburg
Sheffield
• Flexible high quality production of
comprehensive range of long
products
• Also houses a stocking, processing
and distribution center
37
Fagersta
1,000 tonnes
Sheffield
UK
Melting
450
Finishing
• Long Products
45
Richburg
US
Degerfors
Sweden
Fagersta
Sweden
40
40
65
State-of-the-art production facilities – Ferrochrome
Ferrochrome is an integral part of Outokumpu’s operations, and supported by our Kemi mine. It is a clear competitive advantage to us. Majority
of the produced ferrochrome is consumed internally by our own mills, and approximately 25% is sold to other producers outside the company.
Tornio
Tornio
• Ferrochrome works with three smelting furnaces –
at the same site as our integrated stainless steel mill
• Integrated operations in Tornio allow ferrochrome to
be transferred to stainless steel melt shop in liquid
form enabling considerable cost and energy savings
• Annual ferrochrome production capacity 530kt
Kemi
• The only chrome mine in the EU area
• One of the most cost competitive ferrochrome
producers globally
• Low carbon footprint
• Expansion extends the underground mining activities
to 1,000 meters to secure continuous chrome supply
for coming decades
38
| November 27, 2020
Kemi
We secure future long-term ore supply by
deepening of Kemi mine
EUR 283 million
investment in vertical
mine expansion
New main level at 1,000
meters depth: new ore
handling and hoisting
system
39
| November 27, 2020
CO2
footprint of our
ferrochrome only
42%
of the industry
average
We extract significant value through integrated
ownership of mines and smelters
Competitive
cost base
40
| November 27, 2020
Predictable
cost and quality
Fast response
to changes
Efficient inventory
management
Markets
Current market requires decisive actions
COVID-19 impacting
stainless demand
Low priced imports take
market share
Stainless flat consumption, kt
Market shares in Europe, %
Outokumpu vs. imports
Prices historically low
EU base price development, €/t
1200
30
4000
800
28
3000
2000
2016
2017
2018
USMCA
2019
EU
2020
26
400
24
0
2016
2017
Outokumpu
Source: SMR, McKinsey, Eurofer, CRU
42
| November 27, 2020
2018
2019
2020
Imports
2016
2017
2018
2019
2020
High import penetration, price pressure and low
demand have changed the market dynamics
• Unfair trade practices
and growing competition
from Asian producers
• New pricing mechanisms:
from alloy surcharge
to transaction pricing
43
| November 27, 2020
• Trade wars have led
to market disruption
• Shift towards NPI leads
to a change in scrap pricing
Trade defense actions by EU insufficient – Urgent need to
address unfair market practices and carbon leakage
CO² footprint (per ton)
Imports have
significantly
higher carbon
footprint
7.6
European safeguards need to be renewed
and improved
5.4
1.6
Outokumpu
Global
Asia
Market shares in Europe
Despite this,
the share of
imports has
grown
| November 27, 2020
WTO dispute against Indonesian export
restriction on raw materials
30
28
26
24
2016
2017
2018
Outokumpu
44
Full potential of trade defense measures
(anti-dumping & anti-subsidy) to be applied
2019
2020
Imports
Effective measures needed to prevent carbon
leakage
Scrap is a competitive advantage
and driver for sustainability
45
Global
competitiveness
vs. other forms of
nickel
Abundance
of scrap
Scrap and
the importance
for carbon neutrality
Scrap and
correlation to
LME nickel
Scrap is the most
competitive traded
nickel unit
Both Europe and
Americas are
scrap long
Realization of
significant reduction
of CO2 emissions
Market moving
towards decoupling
of scrap from
LME pricing
| November 27, 2020
Nickel price climbed higher during Q3/20
Transaction prices 304 stainless, USD/tonne
Average nickel price,
USD/tonne
3,400
Ferrochrome
benchmark price,
USD/lb.
2,900
+0%
2,400
1,900
1,400
Q2/20
Europe
USA
China
Source: CRU & Metal Bulletin
46
| November 27, 2020
Q3/20
Q2/20
Q3/20
Imports into Europe spiked in July as the new
quarterly import quota period started
Third-country cold rolled imports1 into Europe,
1,000 tonnes
100
Third-country cold rolled imports2 into the US,
1,000 tonnes
50
50
31%
80
30
40
40
60
30
40
20
20
14%
30
20
10
20
10
0
0
From rest of world
From rest of Asia
From Indonesia
47
| November 27, 2020
1.
2.
From China
Import penetration
10
0
0
From rest of world
From rest of Asia
From Indonesia
From China
Import penetration
Cold rolled, monthly average. Source: Eurofer, October 2020 (Q3’20 based on Jul-Aug actuals and forecast for September)
Cold rolled, monthly average. Source: Foreign Trade Statistics, American Iron & Steel Institute, Oct 2020 (Q3’20 based on Jul-Aug)
New import quota period started in October, quota
for other countries already fully utilized
EU cold-rolled quota utilization*
EU hot-rolled quota utilization*
100%
kt
91
%
32
19
51
Days in Turkey
Q4
48
44
2
United
States
29
50
30
India
49
25
15
South
Korea
15
16
11
79
33
100
80%
91
168
60%
40%
40%
20%
20%
32
4
0%
Days in Q4
Other
European safeguards
Anti-dumping & anti-subsidy investigation
•
•
•
Current safeguards will expire in June 2021
Safeguards need to be renewed and improved
Carbon Border Adjustment
•
•
•
Part of the European Green Deal
| November 27, 2020
80%
60%
0%
Taiwan Malaysia Vietnam Other
100%
In August, expiry review of the current anti-dumping duties on cold-rolled
stainless steel from China and Taiwan (imposed in 2015) was initiated
In September, anti-dumping investigation on cold-rolled stainless steel from
India and Indonesia started
In October, definitive anti-dumping duties on hot-rolled stainless steel from
Indonesia, China and Taiwan was imposed for five years
*Source: European Commission’s website for tariff quota consultation, situation in October 30, 2020
Raw materials - price development
Nickel1, USD / tonne
21,000
1.5
19,000
Q3/20
1.14 USD/lb.
1.3
17,000
15,000
1.1
13,000
0.9
11,000
Oct 19, 2020
15,653 USD/t
9,000
Oct 19, 2020
8.8 USD/lb
12
0.7
400
European spot price
Carbon steel scrap4, USD / tonne
Oct 19, 2020
261 USD/t
350
300
10
250
8
4
100
| November 27, 2020
Oct
Sep
Aug
Jul
Jun
May
Apr
Mar
Feb
Jan'20
Dec
Nov
Oct
Sep
Aug
Jul
Jun
May
Apr
Mar
Feb
Jan'19
Dec
Nov
Oct
Sep
Aug
Jul
Jun
May
Apr
Mar
Feb
Jan'18
150
Oct
Sep
Aug
Jul
Jun
May
Apr
Mar
Feb
Jan'20
Dec
Nov
Oct
Sep
Aug
Jul
Jun
May
Apr
Mar
Feb
Jan'19
Dec
Nov
Oct
Sep
Aug
Jul
Jun
May
Apr
Mar
Feb
Jan'18
49
200
6
Oct 19, 2020
0.75 USD/lb.
Jul
Jun
May
Apr
Mar
Feb
Jan'20
Dec
Nov
Oct
Sep
Aug
Jul
Jun
May
Apr
Mar
Feb
Jan'19
Dec
Nov
Oct
Sep
Aug
Jul
Jun
May
Apr
Mar
Feb
Jan'18
Molybdenum3, USD / lb.
14
European contract price
0.5
Oct
Sep
Aug
Jul
Jun
May
Apr
Mar
Feb
Jan'20
Dec
Nov
Oct
Sep
Aug
Jul
Jun
May
Apr
Mar
Feb
Jan'19
Dec
Nov
Oct
Sep
Aug
Jul
Jun
May
Apr
Mar
Feb
Jan'18
7,000
Ferrochrome2, USD / lb.
Data source:
1) Nickel Cash LME Daily Official
2) Contract - MetalBulletin - Ferro-chrome Lumpy CR charge basis 52% & Cr quarterly major European destinations Cr ; Spot: Platts Charge Chrome 52% DDP Europe
3) MetalBulletin - Molybdenum Drummed molybdic oxide Free market Mo in warehouse; 4 Ferrous Scrap Index HMS 1&2 (80:20 mix) $ per tonne fob Rotterdam
Stainless steel market
Major stainless steel producers
50
Outokumpu’s market share
Million tonnes
2019
2018
Tsingshan
9.8
10.2
Europe
28%
TISCO
4.5
5.5
NAFTA
21%
POSCO (incl. ZPSS)
3.3
3.3
Globally
~6%
Acerinox
3.3
3.2
Outokumpu
3.2
3.3
Aperam
3.0
2.1
| November 27, 2020
2019
Source: Global crude stainless steel capacity, SMR January 2020
Sustainability
We are committed to reaching carbon neutrality by
2050 in-line with EU Green Deal targets
20% lower
carbon footprint
by 2023
Carbon neutral by
2050 1
1) Our carbon neutrality commitment relates to scope 1+2.
Regarding scope 3, we’re working closely with our RM suppliers
to ensure that they identify opportunities to reach carbon neutrality by 2050
52
| November 27, 2020
We are the leading producer of sustainable
stainless steel globally and we have the lowest
carbon footprint in the industry
Carbon footprint
less than
30%
of the global
industry average
Industry leading
recycled content
globally
90%
Low ferrochrome
carbon footprint:
High usage of
carbon neutral
electricity in Europe
42%
+80%
of industry average
Energy and material efficiency
53
| November 27, 2020
Stainless steel from China and Indonesia has up-to
five times higher carbon footprint
CO2 emissions of stainless steel producers
Drivers of high carbon footprint
for Chinese and Indonesian
stainless steel
Tonne of CO2 per tonne crude steel
8
1. Low utilization of
recycled material
6
2. Low nickel content ore and
high emissions from blast
furnaces
4
2
3. Use of coal as main
electricity source
0
Outokumpu*
Global average**
China & Indonesia***
*) Source: Outokumpu January 2020
**) Average of ISSF study 2018 and China and Indonesia
***) Outokumpu estimates for China and Indonesia
54
| November 27, 2020
We are on track to reach our science based target
20% lower carbon footprint by 2023
Tonne of CO2 per tonne crude steel
Outokumpu CO2 emissions intensity 1
Outokumpu CO2 footprint by category (2019)
2.0
1.5
28%
47%
1.0
0.5
18%
7%
0.0
20142016
2019
2023
target
Direct
55
| November 27, 2020
1) CO2 emissions per ton of stainless steel
Indirect
Transport
Raw materials
Our sustainability work has been recognised…
Gold rating – top 5% performer –
from supplier sustainability
platform EcoVadis
56
| November 27, 2020
Outokumpu is included in the
Sustainability Yearbook 2020
indicating we are in the top
15% sustainability performers
of steel industry
Outokumpu is rated “Prime”
by ISS ESG indicating that
our sustainability performance
is above the sector-specific
threshold fulfilling ambitious
performance requirements
…and we have clear priorities to do more
Carbon neutral
roadmap
• Energy efficiency
improvements
• Selected capex
• Green electricity sourcing
• Carbon Capture Utilization
• EU Green deal funding
57
| November 27, 2020
Sustainability
credentials
• Customer engagement
of industry
average
• Develop
sustainability
certificates
• ResponsibleSteel™
membership
Lobbying to achieve a
level playing field
• Secure legislation that
supports our business
• Trade defense
• EU safe guards
• Energy taxation
• Carbon border adjustment
We focus on 6 UN Sustainable Development Goals
Outokumpu business is based on recycling
and is a part of circular economy.
Company focuses on resource efficiency
as recycled content, the use of byproducts to replace natural resources, as
well as increasing the energy efficiency in
production process. This sustainable
approach is supported by several key
performance indicators which focus on
efficiency.
We are committed to the United Nation’s Sustainable Development Goals
(SDGs) and our focus was realigned with the updated strategy during
2019. We have selected six SDGs that are the most relevant to us in
terms of our contribution.
58
| November 27, 2020
Products: Stainless steel is long lasting,
requires low maintenance and is 100%
recyclable. The main raw material is
recycled steel. This makes stainless steel
products a solution for responsible
consumption.
Safety of our employees is our undisputed priority
Total recordable injury frequency
rate (TRIFR)
8.7
TRIFR target
for 2020
<3.0
4.4
2016
59
| November 27, 2020
2017
4.1
2018
3.2
3.0
2019
2020
target
We aim to be among the
industry leaders in safety
with the ultimate goal of
zero accidents.
R&D
We are using R&D and technology to increase our
customers’ competitiveness
Our R&D vision 2023
Being the industry
benchmark in
profitable stainless
steel solutions and
becoming the
development partner
of choice for our
customers.
Our unmatched technical competence creates extraordinary value
and attracts new talents
Current and
future
product
demands
Product
support and
problem
solving
capabilities
New
process
technologies
Ensuring
and
improving
process
efficiency
Digital tools
and
data science
R&D expenses EUR 17 million in 2019 (0.3% of net sales)
62
| November 27, 2020
Automotive applications for
major OEMs
Enabler for battery packs
• Qualified by major OEMs
• H-Series stainless steel
• Higher passenger protection
Fuel cell technology
• New design by Outokumpu
• Close collaboration with a
German OEM
Weldable Sandwich
• Sound dampening
• High strength
• Formable
63
| November 27, 2020
Marine applications for
demanding environments
Exhaust cleaning (Scrubbers)
• Excellent corrosion performance
• Long lifetime in harsh conditions
• Close collaboration with market
leaders
Ocean thermal energy
• Heat exchanger with superior
corrosion resistance
• Improved heat transfer
Oil, Gas & Off-Shore
• High corrosion resistance
• Highly durable
• Tests in > 2 km Atlantic depth
64
| November 27, 2020
Process development for
higher efficiency
65
Inclusion Reduction
Surface quality
Digital Manufacturing
• Smart melt shop
treatment to reduce
inclusions
• Excellent results with up
to 40% reduction
• Substantial scratch
defect reduction in
German operations
• Frequency reduced by
70%
•
| November 27, 2020
•
•
Connected quality
inspection along
process route
Artificial Intelligence
Digitally enabled
process improvements
Latest financials
Q3 2020
Highlights
during Q3
• Result negatively impacted by lower demand due
to COVID-19 and typical seasonality in Europe
• Safety performance remained strong
• Strong performance in Americas
• Import penetration spiked in Europe
• Long Products’ strategic review concluded,
accelerated turnaround program initiated by the
new management team
67
| November 27, 2020
Strong cost mitigation actions in the third quarter
Group adjusted EBITDA,
EUR million
Adjusted EBITDA quarter-on-quarter comparison1,
EUR million
Deliveries 7% lower
Fixed cost
compressions
Prices declined
in Europe
Planned
maintenance
work
106
73
45
45
22
Q3
Q4
Q1/20
Q2
Q3
Net of
Pricing
timing and Costs
Q2/20 Deliveries
& mix
hedging
1) Indicative columns based on management estimates
68
| November 27, 2020
Ferrochrome
Others
Q3/20
Key figures
Q3/20
Q3/19
Q2/20
1,000 tonnes
488
533
523
Sales
EUR million
1,254
1,590
1,420
Adjusted EBITDA
EUR million
22
45
45
Net result
EUR million
-63
-27
-37
EUR
-0.15
-0.06
-0.09
Operating cash flow
EUR million
170
12
72
Net debt
EUR million
1,105
1,336
1,243
Gearing
%
45.1
51.4
49.2
EUR million
35
48
52
%
0.2
1.0
1.1
10,118
10,507
10,213
Stainless steel deliveries
Earnings per share
Capital expenditure*
Return on capital employed, ROCE
Personnel at the end of the period
*Capex cash flow
69
| November 27, 2020
BA Europe – high import pressure, typical seasonality
and lower prices resulted in a challenging quarter
Europe adjusted EBITDA,
EUR million
Adjusted EBITDA quarter-on-quarter comparison1,
EUR million
Lower prices and
weaker product mix
68
67
33
Various cost
saving actions
30
9
Q3
Q4
Q1/20
Q2
Q3
Q2/20
Deliveries
Pricing
& mix
1) Indicative columns based on management estimates
70
| November 27, 2020
Net of
timing and
hedging
Costs
Others
Q3/20
BA Americas – solid performance and cost
compression actions improved the result
Adjusted EBITDA quarter-on-quarter comparison1,
EUR million
Americas adjusted EBITDA,
EUR million
Lower fixed
costs supported
profitability
20
14
10
3
-11
Q3
Q4
Q1/20
Q2
Q3
Q2/20
Deliveries
Pricing
& mix
1) Indicative columns based on management estimates
71
| November 27, 2020
Net of
timing and
hedging
Costs
Others
Q3/20
BA Long Products – weak performance continued,
accelerated turnaround program starts
Long Products adjusted EBITDA,
EUR million
Adjusted EBITDA quarter-on-quarter comparison1,
EUR million
Deliveries
22% lower
-2
-1
-4
-3
-9
Q2/20
Q3
Q4
Q1/20
Q2
Q3
Deliveries
Pricing
& mix
1) Indicative columns based on management estimates
72
| November 27, 2020
Net of
timing and
hedging
Costs
Other
Q3/20
BA Ferrochrome – planned maintenance work
completed, start-up successful
Ferrochrome adjusted EBITDA,
EUR million
Adjusted EBITDA quarter-on-quarter comparison1,
EUR million
Cost increase
in line with
guidance
25
19
24
16
9
Q3
Q4
Q1/20
Q2
Q3
Q2/20
Deliveries
1) Indicative columns based on management estimates
73
| November 27, 2020
FeCr
price
Costs
Others
Q3/20
Decisive working capital management and
EUR 72 million VAT deferral boosted cash flow
Q3/20 cash flow,
EUR million
Annual Capex, EUR million
240
2020 Capex
EUR 180 million
200
160
EBITDA
Working
Provisions,
capital pensions, financial
charges and other
Operating
cash flow
Net cash from
investing
activities
Cash flow before
financing
activities
2020 cumulative cash flow,
EUR million
120
80
40
0
2019
EBITDA
74
| November 27, 2020
Working
capital
Provisions,
pensions, financial
charges and other
Operating
cash flow
Net cash from
investing
activities
Cash flow before
financing
activities
2020
Expansion, digitalization & other
Kemi mine
Annual maintenance
Net debt reduced to EUR 1.1 billion, gearing at 45%
Net debt, EUR million
1,800
Net debt/LTM adjusted EBITDA
80%
IFRS16 impact*
EUR 131 million
69%
70%
1,600
51%
1,400
45%
40%
45%
48%
60%
49%
45%
1,200
50%
40%
30%
1,000
< 3.0
20%
800
600
10%
1,610
1,242
1,091
1,241
1,155
1,249
1,243
1,105
2015
2016
2017
2018
2019
Q1
2020
Q2
2020
Q3
2020
Net debt
75
| November 27, 2020
0%
9.8
4.0
1.7
2.6
4.4
2015 2016 2017 2018 2019
Gearing
* Implementation impact on Jan 1, 2019
4.0
4.6
4.5
Q1
Q2
Q3 Target
2020 2020 2020 2022
Total liquidity reserves amounted to EUR 0.9 billion
at the end of September
Debt maturity profile*,
EUR million
Debt structure*
18%
800
16%
7%
13%
13%
New
EUR 125 million
convertible
issued in July
600
400
32%
200
0
Bonds
Long-term loans from
financial institutions
Lease liabilities
Other long-term loans
76
| November 27, 2020
Convertible bonds
Pension loans
Commercial papers
Short-term loans
Cash &
cash
equivalents
* September 30, 2020
2020
2021
2022
Current debt
Non-current debt
Unutilized facilities
2023
2024
2025+
Outlook for Q4 2020
As communicated previously, the COVID-19 pandemic is expected to have a significant
impact on the stainless steel industry throughout 2020, and increases uncertainty.
Outokumpu expects its stainless steel deliveries for the whole Group to remain stable in
the fourth quarter compared to the third quarter.
The seasonal year-end maintenance work in Tornio, Finland is expected to have an
approximately EUR 10 million negative impact on the fourth quarter result compared to
the third quarter.
Adjusted EBITDA is expected to remain at the same level during the fourth quarter
compared to the third quarter.
77
| November 27, 2020
Outokumpu operative cost components*
SG&A (excl. personnel
D&A total and D&A)
• Raw materials 60%
• Energy and other consumables
10–15%
Other cost of
sales
• Personnel expenses 10–15%
Energy and
consumables
Personnel
Raw materials
*Cost components in 2019
78
| November 27, 2020
• Other cost of sales includes e.g.
freight, maintenance and rents
and leases
Over 4% productivity improvement in 2019 –
more to come in 2020
Raw material excellence
Reduction of net working capital
Productivity
improvement
is based on
numerous
local projects
Procurement initiatives
Continuous debottlenecking of key equipment
Moving towards a single operating system
Reliability
79
| November 27, 2020
For more information, call Outokumpu Investor
Relations or visit www.outokumpu.com/investors
Linda Häkkilä
Investor Relations Manager
Mobile: +358 40 071 9669
E-mail: linda.hakkila@outokumpu.com
Päivi Laajaranta
Executive Assistant
Phone +358 9 421 4070
Mobile +358 400 607 424
E-mail: paivi.laajaranta@outokumpu.com
80
| November 27, 2020
Q4 result
The date to be confirmed
Appendix
Production steps – cold rolled coil
Kemi mine
Ferrochrome
works
Sintering furnace
Underground
mine
Steel melting shop
Liquid
ferrochrome
Recycled
steel
Hot rolling mill
Walking Beam Furnace
Hot annealing and pickling line
Hoisting
Smelter
Crushing
Cold rolling plant
Heavy medium
separation
Sendzimir Mill
Ferrochrome
Converter
Electric Arc
Furnace
Roughing Mill
Storage
Cold annealing and pickling line
Steckel Mill
Grinding
Spiral
concentration
AOD Converter
Polishing line
Continuous Casting Machine
82
| November 27, 2020
Tandem
Mill
Bell
Furnace
Slitting Line
Cut-to-lenght Line
Outokumpu is a global leader of advanced solutions
and our stainless steels can be divided in four groups
Deliveries by product group in 2019
Duplex
5%
Ferritic
18%
Other
8%
Austenitic
(CrNiMo)
16%
Austenitic
(CrNi)
53%
Stainless steels are iron-chromium
(Fe-Cr) alloys often with nickel (Ni)
additions that ”do not rust in sea
water”, ”are resistant to
concentrated acids” and ”do not
scale at temperatures up to 1100
°C”. Molybdenum (Mo) and other
alloying elements are sometimes
added to achieve specific
properties. Over the years ever
since the development of stainless
steel, the number of grades have
increased rapidly.
83
| November 27, 2020
Austenitics
Ferritics
Duplex
Martensitic
Nickel content
Non-magnetic
No nickel
Magnetic
Low nickel content
Magnetic
No nickel
Magnetic
Corrosion resistance
Corrosion resistance
Corrosion resistance
Corrosion resistance
Strength / Hardness
Strength / Hardness
Strength / Hardness
Strength / Hardness
Deformability
Deformability
Deformability
Deformability
Surface aesthetics
Surface aesthetics
Surface aesthetics
Surface aesthetics
Raw material costs
Raw material costs
Raw material costs
Raw material costs
Versatile stainless steels with
good combination of properties
for wide range of applications
Applications which have lower
requirements regarding
corrosion and deformability
Applications which require a
high resistance to stress,
corrosion, cracking and/or
strength
Applications which require high
strength and hardness
Stainless steel prices reflect various factors
84
Macro-economic
trends
Raw material
prices and
currency
fluctuations
Development in
consumer
industries
Cost of
capital
| November 27, 2020
Short-term and
long-term
capacity
utilization
Transport
costs
Competition
Import duties
and other trade
restrictions
Traditional stainless steel base price model
consists of three components
Alloy
surcharge
Base price
Extras
Alloy surcharge
Customer-specific,
usually monthly
base price
Material-specific
charges for nonstandardized
products
Product-specific
instrument to
pass alloy costs
along the value
chain
Base price
Extras
85
| November 27, 2020
The logics behind our net of timing and hedging
Underlying position
Exposure
Hedging
Committed* sales
Short
100%
Committed** purchases
Long
100%
Net realizable value
Excess stock
Long
100%
NRV, accounting principle
Base stock
Long
Balance between
managing earnings
& cash flow volatility
Metal hedging
Timing
Pricing in, pricing out
* priced-out or pricing out
** priced-in or pricing in
86
| November 27, 2020
Corporate Governance
Outokumpu Oyj, the Group’s parent company, is a public limited liability company, listed on Nasdaq
Helsinki and incorporated and domiciled in Finland. In its corporate governance and management,
Outokumpu Oyj complies with the laws and regulations applicable to Finnish public companies, the
company’s Articles of Association and the Corporate Governance Policy approved by the company’s
Board of Directors.
Outokumpu Oyj follows the Finnish Corporate Governance Code, effective as of January 1, 2016. The
Finnish Corporate Governance Code is issued by the Finnish Securities Market Association and
adopted by Nasdaq Helsinki.
The governing bodies of the parent company Outokumpu Oyj, i.e. the General Meeting of Shareholders,
the Board of Directors, and the President and Chief Executive Officer (CEO), have the ultimate
responsibility for the management and operations of the Outokumpu Group (“the Group”). The
Outokumpu Leadership Team supports and assists the CEO in the efficient management of the Group’s
operations. The latest Corporate Governance Statement and other updated corporate governance
information can be found on the Group’s Corporate Governance website.
The General Meeting of Shareholders convenes at least once a year. Under the Finnish Companies
Act, certain important decisions such as the approval of financial statements, decisions on dividends
and increases or reductions in share capital, amendments to the Articles of Association, and election of
the Board of Directors and auditors, fall within the exclusive domain of the General Meeting of
Shareholders
87
| November 27, 2020
Outokumpu organization
President & CEO
Heikki Malinen
Europe
88
| November 27, 2020
Finance
Human resources
Technology &
Sustainability
Strategy
Americas
Ferrochrome
Long Products
Dividend payments
Net income, EUR million
Dividend per share, EUR
392
86
144
130
-75
Following a review of the JanuarySeptember 2020 financial results,
Outokumpu's Board of Directors
has decided that owing to the
importance of strengthening the
Company's balance sheet no
dividend will be paid for the
financial year 2019.
-439
2014
89
| November 27, 2020
2015
0.10
0.25
0.15
2016
2017
2018
2019
The Board confirms that in the
challenging market environment
improving the Company's financial
position will continue to be of
highest priority.
Ownership structure & major shareholders
Nominee registered and non-Finnish holders 17%
Finnish institutions, companies and foundations 24%
Solidium 22%
Households 37%
1)
90
| November 27, 2020
Directly registered shareholders on September 30, 2020
Solidium and governance
91
•
Holding company wholly owned by the State of Finland AA
•
Major shareholder in 12 listed companies including SSAB, Elisa, Sampo, Nokia, Tieto,
Metso and Valmet
•
Mission is to strenghten and stabilize Finnish ownership in nationally important
companies and to increase the value of their holdings in the long term
•
Shareholder of Outokumpu following its takeover of the 31.1% government stake in
2009
•
Participated in the Outokumpu rights issues in 2012 and 2014
•
Currently no seat in Outokumpu Board of Directors but they use power via
Shareholder’s Nomination Board work.
| November 27, 2020
Board of Directors
Chairman of the Board of Directors
Kari Jordan
Chairman of the
Remuneration
Committee
92
| November 27, 2020
Members of the Board of Directors
Kati ter
Horst
Member of the
Audit Committee
Eeva Sipilä
Chairman of the
Audit Committee
Pierre
Vareille
Julia
Woodhouse
Member of the
Remuneration
Committee
Member of the
Audit Committee
Vesa-Pekka
Takala
Member of the
Audit Committee
Outokumpu leadership team
93
Heikki Malinen
Pia Aaltonen-Forsell
Thomas Anstots
Niklas Wass
Tamara Weinert
President & CEO
CFO
EVP, Commercial,
Business Area Europe
EVP, Operations,
Business Area Europe
Acting President,
Business Area Americas
Martti Sassi
Johann Steiner
Jan Hofmann
Stefan Erdmann
President, Business
Area Ferrochrome
Chief Human
Resources Officer
Chief Strategy Officer
Chief Technology
Officer
| November 27, 2020
Group key financials
2019
2018
20173)
2016
2015
1,000 tonnes
2,196
2,428
2,448
2,444
2,381
Sales
€ million
6,403
6,872
6,356
5,690
6,384
Adjusted EBITDA
€ million
263
485
631
309
165
Net result
€ million
-75
130
392
144
86
Return on equity 1)
%
-2.8
4.8
15.4
6.4
3.9
Return on capital employed 1)
%
0.8
7.0
11.3
2.6
5.3
Operating cash flow 2)
€ million
371
214
328
389
-34
Net debt
€ million
1,155
1,241
1,091
1,242
1,610
Gearing
%
45.1
45.1
40.1
51.4
69.1
€ million
221
260
174
164
154
headcount
10,390
10,449
10,485
10,977
11,833
Key figures
Stainless steel deliveries
Capital expenditure 2)
Personnel at the end of the period
94
| November 27, 2020
1)
2)
3)
Key figure definition changed in 2016. Figures for 2015 have been restated. Figures for 2014 have not been restated
2014 presented for continuing operations.
Figures for 2017 have been restated due to IFRS 15 adoption. Figures for 2014–2016 have not been restated.
Balance sheet
Assets (EUR million)
2019
2018
Non-current assets
Intangible assets
Equity and liabilities (EUR million)
2019
2018
Equity attributable to the equity holders of the Company
2,562
2,750
1,053
798
-
1
12
12
335
318
Provisions
85
65
29
35
1,514
1,229
427
511
Derivative financial instruments
17
20
607
585
2,767
2,659
Investments in associated companies and joint ventures
38
53
Derivative financial instruments
Financial assets at fair value
31
86
Deferred tax liabilities
5
2
229
247
Defined benefit plan assets
68
72
Trade and other payables
Trade and other receivables
2
2
Total non-current liabilities
3,747
3,706
Property, plant and equipment
Derivative financial instruments
Deferred tax assets
Total non-current assets
Non-current liabilities
Non-current debt
Defined benefit and other long-term employee benefit obligations
Current liabilities
Current assets
Inventories
1,424
1,555
Investments at fair value
13
13
Provisions
25
5
Derivative financial instruments
15
15
Current tax liabilities
17
12
Trade and other receivables
514
640
1,475
1,471
Cash and cash equivalents
325
68
Total current liabilities
1,962
2,019
2,291
2,292
TOTAL EQUITY AND LIABILITIES
6,038
5,998
Total current assets
TOTAL ASSETS
95
Current debt
| November 27, 2020
6,038
5,998
Trade and other payables
Share-related key figures
Key figures
2018
2017
2016
2015
Earnings per share 1) 2)
€
-0.18
0.32
0.95
0.35
0.23
Cash flow per share
€
0.90
0.52
0.79
0.94
-0.08
Equity per share 1) 2)
€
6.22
6.70
6.59
5.84
5.60
Dividend per share
€
0.10 3)
0.15
0.25
0.10
-
%
3.6
4.7
3.2
1.2
-
neg.
10.00
8.15
24.31
11.85
€
2.81
3.20
7.74
8.51
2.73
€ million
1,155
1,312
3,223
3,541
1,138
411,774,715
410,563,719
412,671,549
413,860,600
415,489,308
884,254
826,636
1,021,607
955,682
1,345,515
Dividend yield
Price/earnings ratio 1) 2)
Trading price at the end of the period
Market cap at the end of the period
Number of shares at the end of the
period 4)
1,000
shares
Trading volume 5)
96
2019
| November 27, 2020
1)
2)
3)
4)
5)
IFRS 16 – Leases has been adopted on January 1, 2019 using the modified retrospective approach. Comparative information has not been restated.
Figures for 2017 have been restated due to IFRS 15 adoption in 2018. Figures for 2014–2016 have not been restated.
The Board of Directors’ proposal to the Annual General Meeting
Excluding treasury shares
Includes only Nasdaq Helsinki trading
Cash flow
Key figures
97
2019
2018
2017
2016
Net result for the financial year
€ million
-75
130
392
144
Total adjustments
€ million
330
313
259
134
Change in working capital
€ million
218
-112
-180
307
Provisions, pensions, financial charges and other
€ million
-97
-112
-135
-187
Income taxes paid
€ million
-5
-5
-8
-9
Operating cash flow
€ million
371
214
328
389
Net cash from investing activities
€ million
-65
-229
-63
-81
Cash before financing activities
€ million
306
-14
264
308
| November 27, 2020
Business area Europe
Key figures
2019
2018
2017
2016
2015
1,000 tonnes
1,459
1,547
1,592
1,625
1,578
€ million
4,089
4,267
4,156
3,767
4,156
€ million
66
97
81
93
120
Adjusted EBITDA
€ million
216
248
404
295
203
Adjustments to EBITDA
€ million
17
10
-
-26
-25
EBITDA
€ million
233
259
404
270
177
Adjusted EBIT
€ million
82
134
281
143
38
Depreciation and amortization
€ million
-134
-114
-123
-160
-165
Capital expenditure
€ million
44
76
70
81
85
Operating capital
€ million
1,901
1,934
1,848
1,808
2,061
headcount
6,753
6,806
6,748
7,038
7,394
Stainless steel deliveries
Sales
of which intra-group
Personnel at the end of period
98
| November 27, 2020
Business area Americas
Key figures
2019
2018
2017
2016
2015
1,000 tonnes
601
762
742
690
533
€ million
1,346
1,715
1,546
1,325
1,214
€ million
3
45
33
21
37
Adjusted EBITDA
€ million
-27
-5
21
-27
-120
Adjustments to EBITDA
€ million
-
-
-
21
-17
EBITDA
€ million
-27
-5
21
-6
-136
Adjusted EBIT
€ million
-84
-56
-31
-81
-200
Depreciation and amortization
€ million
-56
-51
-52
-54
-80
Capital expenditure
€ million
20
18
18
17
19
Operating capital
€ million
914
1,084
1,072
1,127
1,279
headcount
1,934
1,991
2,094
2,219
2,265
Stainless steel deliveries
Sales
of which intra-group
Personnel at the end of period
99
| November 27, 2020
Business area Long Products
Key figures
2019
2018
2017
2016
2015
1,000 tonnes
226
285
264
245
213
€ million
642
740
591
487
551
€ million
137
220
186
153
162
Adjusted EBITDA
€ million
-7
25
16
-1
10
Adjustments to EBITDA
€ million
-
-
-
19
-
EBITDA
€ million
-7
25
16
18
10
Adjusted EBIT
€ million
-16
18
10
-8
2
Depreciation and amortization
€ million
-8
-6
-7
-7
-8
Capital expenditure
€ million
18
30
8
8
7
Operating capital
€ million
157
179
113
139
151
headcount
883
892
584
628
658
Stainless steel deliveries
Sales
of which intra-group
Personnel at the end of period
100 | November 27, 2020
Business area Ferrochrome
Key figures
2019
2018
2017
2016
2015
1,000 tonnes
505
497
415
469
457
€ million
461
542
610
371
410
€ million
293
345
483
269
295
Adjusted EBITDA
€ million
96
210
217
80
107
Adjustments to EBITDA
€ million
-
-
-
-0
-
EBITDA
€ million
96
210
217
80
107
Adjusted EBIT
€ million
67
179
187
48
76
Depreciation and amortization
€ million
-29
-30
-29
-29
-31
Capital expenditure
€ million
103
79
34
20
21
Operating capital
€ million
692
640
648
617
634
headcount
472
441
437
426
428
Ferrochrome production
Sales
of which intra-group
Personnel at the end of period
101 | November 27, 2020
Disclaimer
This presentation contains, or may be deemed to contain, statements that are not historical facts but
forward-looking statements. Such forward-looking statements are based on the current plans,
estimates and expectations of Outokumpu’s management based on information available to it on the
date of this presentation. By their nature, forward-looking statements involve risks and uncertainties,
because they relate to events and depend on circumstances that may or may not occur in the future.
Future results of Outokumpu may vary from the results expressed in, or implied by, the forwardlooking statements, possibly to a material degree. Factors that could cause such differences include,
but are not limited to, the risks described in the "Risk factors" section of Outokumpu’s latest Annual
Report and the risks detailed in Outokumpu’s most recent financial results announcement.
Outokumpu undertakes no obligation to update this presentation after the date hereof.
102 | November 27, 2020